Smurfit Westrock Reports Fourth Quarter and Full Year 2024 Results

Third Quarter Highlights and other notable items: *Net sales of $5.121 billion *Net income of $202 million, Adjusted Net Income of $229 million *Earned $0.79 per diluted share (“EPS”) and $0.89 of Adjusted EPS *Consolidated Adjusted EBITDA of $802 million; Corrugated Packaging segment Adjusted EBITDA increased 11.6% year-over-year *Results negatively impacted by $89 million due to economic downtime and a $39 million increase in non-cash pension costs year-over-year; WestRock’s U.S. qualified and non-qualified pension plans remain overfunded

Sustainable recycling management is becoming increasingly important in trade and industry. Colorful recycled paper from Koehler makes PresentFill® boxes and fill material more environmentally friendly. A product’s packaging is crucial for 70 percent of consumers in their decision to buy. The circular economy is thus increasingly becoming a strategic topic in the sustainability efforts of trade and industry. In addition to transport containers, packaging includes fill material to protect the packed goods. The fact that packaging is increasingly being considered with regard to environmental protection and recyclability has been conducive to the success of the Bavarian company PresentFill®. Company founder Gerald Göbel started producing filling and padding material in 2013. The “raw material” in the form of recycled paper has been delivered ever since by the Koehler Paper Group from their factory in Greiz, Thuringia. There, the family company produces recycled paper from 100% secondary fiber material, proving, through the use of brilliant colors, that sustainability can be colorful.

Corrugated volume growth in the first quarter was up approximately 7% in both Europe and the Americas. This demonstrates SKG’s exposure to high-growth markets, sectors and channels including innovative and sustainable packaging solutions and e-commerce. Containerboard prices have increased in the first quarter and again at the start of the second quarter as a result of strong demand and higher recovered fibre and other costs. SKG’s recovered fibre cost has increased by approximately €90 million versus the first quarter of last year. We are progressively recovering these input costs through our corrugated box system. In addition to cost pressures, the industry is experiencing supply disruptions and shortages of packaging papers globally. Against this market backdrop, our integrated business model is again, proving a key differentiator with continuity of supply to our customer base.